EXCMEDIUM SIGNALFINANCIAL10-K

EXC reported exceptional net income growth of 296% alongside strong operational performance, but with increasing debt levels and significant capital expenditure expansion.

The dramatic net income improvement from $296M to $1.2B suggests either recovery from prior period challenges or one-time benefits that warrant investigation. The strong operating cash flow growth of 12.3% supporting increased capital investments of 20.2% indicates healthy operational fundamentals, though investors should monitor the 10.7% debt increase for leverage concerns.

Comparing 2026-02-12 vs 2025-02-12View on EDGAR →
FINANCIAL ANALYSIS

EXC demonstrated robust financial performance with net income surging 296% to $1.2B while operating income grew a more modest 19.2% to $5.1B, suggesting significant non-operating improvements or one-time gains. The company strengthened its balance sheet with 75% cash growth and increased current assets by 13.9%, while simultaneously investing heavily in growth with capital expenditures rising 20.2% to $8.5B. However, total debt increased 10.7% to $49.4B, indicating the company is funding expansion through both improved cash generation and additional borrowing, creating a mixed but generally positive financial trajectory for investors.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+295.6%
$296.0M$1.2B

Net income grew 295.6% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
+75.4%
$357.0M$626.0M

Cash position surged 75.4% — strong cash generation or capital raise providing significant financial cushion.

Accounts Receivable
Balance Sheet
+20.4%
$2.7B$3.3B

Receivables grew 20.4% — monitor days sales outstanding for collection efficiency.

Capital Expenditure
Cash Flow
+20.2%
$7.1B$8.5B

Capex increased 20.2% — ongoing investment in capacity or infrastructure for future growth.

Operating Income
P&L
+19.2%
$4.3B$5.1B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Current Assets
Balance Sheet
+13.9%
$8.4B$9.5B

Current assets grew 13.9% — improving short-term liquidity or inventory/receivables build.

Operating Cash Flow
Cash Flow
+12.3%
$5.6B$6.3B

Operating cash flow grew 12.3% — strong conversion of earnings to cash, healthy business fundamentals.

Total Debt
Balance Sheet
+10.7%
$44.7B$49.4B

Debt rose 10.7% — additional borrowing for investment or operations; monitor coverage ratios.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-12
ADDED
BGE determined that the carrying value was not recoverable and that its fair value was less than carrying value.
As a result, in 2022, a pre-tax impairment charge of $48 million was recorded in Operating and maintenance expense in Exelon s and BGE s Consolidated Statements of Operations and Comprehensive Income.
The fair value used in the analysis was based on an estimate of an expected sales price.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS and (b) PART II, ITEM 8.
The City also has an option to terminate and purchase the ComEd system (municipalize), which also requires one year notice.
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REMOVED
Management s Discussion and Analysis of Financial Condition and Results of Operations and (b) Part II, ITEM 8.
The separation was completed on February 1, 2022, creating two publicly traded companies, Exelon and Constellation.
See Note 2 Discontinued Operations of the Combined Notes to Consolidated Financial Statements for additional information.
Business Services Through its business services subsidiary, BSC, Exelon provides its subsidiaries with a variety of support services at cost, including legal, human resources, finance, information technology, and supply management services.
The City also has an option to terminate and purchase the ComEd system ( municipalize ), which also requires one year notice.
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